Qualified disaster relief payments excluded under IRC §139 are not treated as taxable income for New Jersey gross income tax purposes. The New Jersey Gross Income Tax Act only taxes specifically identified categories of income. Qualified disaster relief payments are not listed as a taxable category of income. Therefore, for New Jersey gross income tax purposes, qualified disaster relief payments are excluded from income.

Qualified disaster relief payments excluded under IRC §139 include amounts to cover necessary personal, family, living or funeral expenses that were not covered by insurance. They also include expenses to repair or rehabilitate personal residences or repair or replace the contents to the extent that they were not covered by insurance.

Disaster-related payments for lost wages or business income are subject to tax and must be reported for New Jersey gross income tax purposes.